The Advocate and Democrat

After a recent Fiscal Review Committee report recommended delaying the biofuel plant in Vonore, Monroe County Mayor Allan Watson commented on the situation at an Economic Development Board meeting Thursday.

"Some of you may have heard that there is concern too much public money is being spent on the plant and that it could be delayed for a while," Watson said. "But Dr. Kelly Tiller came to my office after the committee meeting and assured me everything was going as planned."

Tiller is the CEO and president of Genera Energy, LLC, a company set up by the UT Research Foundation to operate the project.

"Tiller told me, that we're getting into political season and everybody is getting themselves into position," Watson said. "She said the biofuel plant is on solid ground and she was actually here about a new project that could be coming to Vonore and go world wide."

Bob Sliger, who is officially retired from the UT Agricultural Extension Agency but sitting in until a replacement is named, confirmed what Watson was told.

"Everything is moving right along," Sliger said. "There are 2,600 acres devoted to making the switchgrass, with about 1,300 acres of that in Monroe County. And, actually, they're wanting to find another 3,000 acres to grow the switchgrass on."

The plant, which sits in the Niles Ferry Industrial Park in Vonore, is scheduled to be finished Dec. 14.

One concern of the Fiscal Review Committee was that the first batch of biofuel wouldn't actually come from switchgrass, a concern Sliger confirmed.

"The first ethanol produced will probably come from corn cobs," Sligers aid. "They are easier to use, but after the first few runs, it will be changed to switchgrass. Dupont has big plans for this product and wants to grow a lot of the grass.

"One thing that could happen," Sliger added, "is the byproducts could turn out to be even more profitable than the fuel. This is such a possibility that other big companies have shown interest in what is going on."

But Watson emphasized that the project wasn't in any danger of being closed down. "Dr Tilley told me not to worry about switchgrass," he said.

Some other facts released in the Fiscal Review Committee report included:

In 2007, officials said the pilot project would produce 5 million gallons per year using switchgrass. Plans now call for just 250,000 gallons and the initial production of ethanol will use corn cobs.
The 2007 projections were that Tennessee farmers would grow switchgrass on 6,000 acres to be used in producing ethanol. Only about 2,700 acres are now under contract for growing switchgrass, with farmers paid $450 per acre per year. Most of the crop will go for research purposes other than ethanol production.
In 2007, officials projected that the pilot plant would become self-sufficient within five years, in part by selling 5 million gallons of ethanol per year, and require no more state funding. The report says the project cannot be self-sufficient and "production capacity is not large enough to generate revenue to pay its operating costs."

michael.thomason@advocateanddemocrat.com | 442-4575